New Car Depreciation
July 16, 2014
The instant a brand new car drives off the lot of a dealership the value of the car depreciates. The minute all four tires roll off the lot and onto the road, the value of the car drops several thousand dollars and will only continue to drop over the years. For this reason, it is important to find and work with a used auto dealer in O’Fallon to ensure that when it comes to purchasing a car, you are getting the best bang for your buck.
Wondering just how much your brand new car will deprecate in value after you have purchased it? Here is a look at the statistics.
Approximate Statistics for How Much a Car Deprecates in Value
It is hard to determine exactly how much a car deprecates in value after it has left the lot. A lot of factors, including make and model, condition of the car, and purchasing price, will influence the value of the car.
An example of how much a brand new car depreciates in value:
- A minute after it left the lot – depreciates 9%
- A year after purchasing the car – depreciates 19% from original purchasing price
- Two years after purchasing the car – value is decreased by 31%
- Three years after purchasing the car – value is decreased by 42%
The rapid decrease in value of a brand new car within the first two years is a major reason why many individuals choose to purchase used cars. Used cars depreciate in value over time, but the amount of money that is ‘lost’ is significantly less.
For more information and a wide selection of quality used vehicles in O’Fallon, 5 Star Auto Plaza provides the best vehicles around. If you are looking to purchase a car and an auto dealer in O’Fallon, call 5 Star Auto Plaza today at (636) 940-7600.